Breaking News:
- Second distribution round launches with over $5B in payouts
- Repayments based on 2022 crypto prices, not current values
- Different payout percentages across claim categories
- Some countries including China and Iran ineligible for distributions
💰 Massive Repayment Program Underway
FTX has started its second distribution round of payments to creditors, distributing over $5 billion to holders in the Plan’s Convenience and Non-Convenience Classes who met pre-distribution requirements.
In a Friday post on X, the exchange stated that creditors should begin seeing funds reflected in their accounts within one to three business days.
📊 Second Round Payout Breakdown
FTX previously announced the second distribution structure:
- 72% payout for Dotcom Customer Entitlement Claims
- 54% for US Customer Entitlement Claims
- 61% each for General Unsecured Claims and Digital Asset Loan Claims
- 120% payout for Convenience Claims
All eligible creditors will receive funds through distribution service partners Kraken and BitGo.
🗣️ Administrator Comments
John J. Ray III, Plan Administrator of the FTX Recovery Trust, commented on the rollout:
“Today’s announcement represents continued progress returning cash to FTX’s customers and creditors. I am proud of the outstanding success of the recoveries to date. Our work continues on recovering more for creditors and resolving outstanding claims.”
⚠️ Scam Warnings Issued
FTX warned customers to remain cautious of phishing emails and scam websites that may appear to look like the official FTX Customer Portal.
😤 Creditor Frustration Over 2022 Pricing
The major grievance: payouts are based on crypto prices from FTX’s November 2022 collapse. Key examples:
- Bitcoin traded around $20,000 then
- BTC now trades $90,000-$112,000
- Creditors receive only 10-25% of current crypto value
🌍 Geographic Restrictions Impact
FTX creditor Sunil Kavuri highlighted that creditors in 163 countries are ineligible for reimbursements. Excluded countries include:
- China (largest jurisdiction — 8% of global customer base)
- Iran, Russia, Egypt, Pakistan, Greenland
Restrictions stem from custodial exchanges Kraken and BitGo not operating in these regions.
📈 First Round and Market Impact
In February, FTX completed its first payout round, distributing $1.2 billion to holders with claims under $50,000.
Crypto investors and speculators are monitoring the impact of reimbursements, knowing recipients could sway digital asset market prices if they sell or swap funds on retail exchanges.
Bottom Line: While the $5B payout provides relief to many FTX creditors, frustration remains over 2022-based valuations that significantly undervalue current crypto holdings.